Top 5 Investment Ideas for Creatives

Traditional investments aren’t for everyone - although investment avenues such as the stock market/ stocks and stock funds, government bonds and high-yield savings accounts can be a great way to earn profit over time, they aren’t necessarily exciting options.

If you’re a creative person, investing may feel like a daunting prospect - the world of finance can seem very far removed from the world of art, design and innovation. However, there are options out there for you.

There are many ways you can combine passion with profit and allow yourself to be creative with your investments. That’s what we’ll explore in this blog post. Read on for the best types of investment for creatives, from real estate to art investment.

Real Estate Investment

Many creative people choose to invest in real estate. First of all, when you purchase a property, you have the creative freedom to redesign the home to add value to the property. While the property market can be prone to fluctuations, investing in bricks and mortar has historically proven to be a reliable strategy for building wealth.

In the UK, property ownership can also come with certain tax benefits, such as exemption from Capital Gains Tax on primary residences. You could diversify your real estate portfolio by exploring opportunities beyond traditional residential properties.

For example, commercial real estate including office spaces and retail units. This can offer attractive yields and potential for capital appreciation. Additionally, emerging trends like co-working spaces or shared accommodation present innovative avenues for investment. If you’re looking for a less hands-on investment option, why not consider investing in a Real Estate Investment Trust (REIT)?

This is like a mutual fund for real estate - allowing you to pool your money to buy, manage, and sell income-generating properties. You will receive dividends from the rental income generated by these properties.

Ultimately, real estate investment can provide a source of passive income through monthly rental payments from tenants, act as a hedge against inflation, and diversify your portfolio.

Collectables

• Coins
• Trading cards
• Toys
• Comic books
• Antiques
• Stamps
• Books
• Vintage cars

Investing in collectables involves purchasing items with the expectation of their value increasing over time. Collectables are a tangible asset - they’re something that you can enjoy without affecting the value.

They can act as a tangible store of value and a hedge against economic downturns. However, it’s important to note that the value of collectables can be subjective - and can be influenced by trends and market demand.

While investing in collectables can be exciting and a great addition to a diversified investment portfolio, it’s important to conduct thorough research and authentication.

Art Investment

Art was once a luxury asset - but in recent times, the art market has become much more accessible. Art investment can offer attractive returns, especially if you have a keen eye for talent or undervalued pieces. Investing in art is a great way to generate profit if you are a creative person or an art lover.

When you invest in pieces of art, you can combine your passion with profit. Art can include paintings, sculptures, photographs, and other creative expressions. Unlike traditional investments such as stocks and bonds, art offers the potential for aesthetic enjoyment as well as financial gain.

To increase the chances of a successful investment, be sure to conduct thorough research. Research the art market and market trends, the different genres of arts, as well as popular and emerging artists.

Factors like an artist's reputation, the rarity of the artwork, and its provenance affect its value. Ultimately, art investment can diversify a portfolio and offer the potential for significant returns.

Cryptocurrency

Cryptocurrency is a form of digital currency - you may have heard of the likes of Bitcoin, Ethereum and Litecoin. Although cryptocurrencies have a history of volatility, they can make a good short-term investment.

Cryptocurrency investment can lead to substantial gains if you’re willing to take on a higher risk. Before investing your money into crypto, be sure to consider your risk tolerance, and investment horizon, research the market, and proceed with caution.

Fine Wine and Whisky Investment

If you have a vast knowledge of alcohol, whether you’re an oenophile or a whisky connoisseur, you can turn your passion into profit with time. Whisky investment is considered a long-term investment - with whisky casks taking a minimum of three years to mature.

Generally speaking, the older the whisky, the more valuable it is. Whisky and fine wines have a track record of appreciating in value over time. However, investing in wine and whisky requires extensive research.

Likewise, you’ll need to consider storage - poor storage can drastically lower the value of your wine or whisky. When done correctly, alcohol investment can be a rewarding way to diversify your investment portfolio.

Peer-to-Peer Lending

Finally, we have peer-to-peer lending. Although this option isn’t the most creative investment, it differs from more traditional investment avenues. Peer-to-peer lending platforms offer an alternative to traditional banking institutions, allowing you to lend money directly to individuals or businesses in exchange for interest payments.

While peer-to-peer lending carries certain risks, such as the possibility of borrower default, it can also provide attractive returns compared to savings accounts or government bonds.

Be sure to speak to a financial expert for financial advice - this can help you to make financial decisions with confidence, select the best interest rates, and make the most out of your investment.

What About Traditional Investments?

Although creative investments can be more exciting, combining alternative investments with traditional avenues can be a great way to diversify your portfolio and reduce the risk.

For example, high-interest savings accounts are a great option. A savings account provides a secure place to deposit your funds while earning interest. However, they typically offer lower returns compared to other investment avenues. Another traditional option is corporate bond funds.

This involves investing in a portfolio of bonds issued by corporations. These funds offer regular interest payments, making it a great option if you’re looking for a regular income with lower risk.

Some other options include dividend stocks, mutual funds/ investment funds, and index funds. Index funds track a specific market index, such as the S&P 500 index funds, and aim to replicate its performance. Traditional investments are a good idea if you’re looking for a more conservative portfolio with lower risk.

Looking to Invest in Art?

If you’re considering investing in art, look no further than Grove Galley. With Grove Gallery, you can invest in a wide range of artists. We have a diverse selection of artists to invest in, from new and emerging artists to prominent blue-chip artists.

If you’re looking for lower-risk investments, we recommend opting for artwork from blue-chip artists. We have works available from the likes of Banksy, Andy Warhol, Picasso, Stik, Stony, Zara Muse and countless others.

You can begin your art investment journey with just £3,000 - and expect yearly returns of up to 12%. Whether you’re a beginner or a seasoned art collector, utilise our expert art advisory services for investment advice.

Our team of experts can ensure you make an informed decision, and make the most out of your investment. Download our investment guide today to get started!